Mondi’s Shares (MNDI) Drop Close To Decade Low – What Happened?

Mondi's share price (LON:MNDI) was the worst performer in the FTSE 100 on Thursday, as H1 results showed a paper business that has had profits trimmed in half, and a falling EPS. A stable underlying EBITDA of €564 million for the first half of 2025 across the business mirrors that of the previous year.

MNDI pulled back 12.1% on the day, moving shares closest to their lowest level in a decade, yet managing to hold on to the psychological support at 1,000p.

The company's Corrugated Packaging segment was a real boost, delivering a 42% surge in underlying EBITDA to €203 million. Increased volumes resulting from ramped-up capacity from recently completed projects and higher average containerboard selling prices both contributing to the bottom line.

Flexible Packaging also performed well, with EBITDA up 9% to €302 million.

However, Uncoated Fine Paper is what would be the main cause of concern for markets, with the unit dropping to €81 million from €166 million Y/Y. Sharply lower average selling prices for both uncoated fine paper and pulp, compounded by a reduced forestry fair value gain (€18 million versus €49 million in H1 2024) were the biggest culprits.

CEO Andrew King acknowledged the mixed performance, stating in a release:

“Mondi delivered a solid performance in the first half of 2025 in a challenging macroeconomic environment… All our major capacity expansion projects are now operational and ramping up production and sales, and the integration of Schumacher is on track.”

EPS also declined to €0.42 from €0.505 in 2024, reflecting higher depreciation and finance costs associated with the company's increased debt balance.

Looking ahead, Mondi's management has adopted a cautious outlook, acknowledging ongoing geopolitical and macroeconomic uncertainties. The company remains focused on productivity, cost, and cash flow optimization.

While the company's strategic expansion and strong performance in corrugated and flexible packaging are encouraging, the headwinds in the paper market and increased leverage are causes for concern. Add to that cautious guidance, and a falling EPS, and you have a recipe for a double digit share price decline. Markets were clearly looking for more.